Catalent Inc (CTLT)
Inventory turnover
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 3,428,000 | 3,223,000 | 3,188,000 | 2,646,000 | 2,111,000 |
| Inventory | US$ in thousands | 574,000 | 777,000 | 702,000 | 563,000 | 324,000 |
| Inventory turnover | 5.97 | 4.15 | 4.54 | 4.70 | 6.52 |
June 30, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $3,428,000K ÷ $574,000K
= 5.97
Inventory turnover measures how efficiently a company manages its inventory by calculating the number of times its inventory is sold and replaced over a specific period. In the case of Catalent Inc, the inventory turnover has fluctuated over the past five years.
As of June 30, 2024, Catalent Inc's inventory turnover is 5.97, indicating that the company sells and replaces its inventory approximately 5.97 times during the year. This suggests an improvement compared to the previous year, where the turnover was 4.15.
Looking at the trend over the five-year period, we observe that the inventory turnover ratio has fluctuated, ranging from a low of 4.15 in 2023 to a high of 6.52 in 2020. Generally, a higher inventory turnover ratio is favorable as it implies that the company is efficiently managing its inventory by quickly converting it into sales.
Catalent Inc's current inventory turnover of 5.97 is a positive sign of efficient inventory management, but it is important to monitor future trends to ensure sustained operational efficiency. A higher turnover can indicate effective inventory control, strong sales, or potentially even slim profit margins. Further analysis and comparison with industry benchmarks may provide additional insights into the company's performance in managing its inventory effectively.
Peer comparison
Jun 30, 2024